Gazprom: Business Growth, Enhancing Supply Security Gazprom 2018 Investor Day Disclaimer

GAZPROM 2018 INVESTOR DAY

GAZPROM: BUSINESS GROWTH, ENHANCING SUPPLY SECURITY GAZPROM 2018 INVESTOR DAY DISCLAIMER

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2 GAZPROM 2018 INVESTOR DAY

PRESENTATION GAZPROM SPEAKERS

ANDREY KRUGLOV ALEXANDER MEDVEDEV Deputy Chairman Deputy Chairman of Management Committee of Management Committee Finance Export

VSEVOLOD CHEREPANOV KIRIL POLOUS Member of the Management Committee, Head of Directorate Head of Department Upstream Strategy GAZPROM 2018 INVESTOR DAY

KIRIL POLOUS STRATEGY Head of Directorate GAZPROM 2018 INVESTOR DAY GAZPROM’S ANNIVERSARY

Production Revenue structure1 13 tcm of gas 100% 700 1993 bn t of oil and condensate Exports2

24% GAS 5 OIL  68% 8% tcm POWER 2016

1 According to IFRS standards and taking into account revenue structures of gas, oil and electrical power companies of Gazprom’s Group 2 Including exports to FSU countries

5 STRATEGY GAZPROM 2018 INVESTOR DAY KEY EVENTS AND DEVELOPMENT TRENDS

KEY EVENTS Gazprom’s long-term position in the global • Extension of OPEC and Russia’s agreement to cut oil production energy market has a great potential due to: • Gradual increase of hydrocarbon prices • Rich resource base of conventional fields • New US, Australian and Russian LNG volumes show up • US gas production cut in 2016 • Well-developed gas transportation • Imposition of gas export restrictions mechanism in Australia infrastructure • Cancellation of Northern field production cap in Qatar • Low operating costs • Hydrocarbon production growth in Iran after partial lifting of sanctions • Availability of long-term gas supply • Historic high growth of demand and imports of natural gas in China contracts • Active work on diversifying the range TRENDS of products, supply routes and markets • Coal-fired generation stalling in some European countries • Declining global investments in renewable energy • “Asian LNG premium” KEY EVENTS OF 2017 CREATED • LNG “marinization” AN ADDITIONAL POTENTIAL FOR • EV rush STRENGTHENING GAZPROM’S • Increased demand for Russian gas in Europe STRATEGIC ADVANTAGES

6 STRATEGY GAZPROM 2018 INVESTOR DAY 2035 GLOBAL ENERGY OUTLOOK

World energy Asia-Pacific +20% consumption region

+2p.p. Gas share in energy mix 1.5% CAGR

New leader in terms Asia-Pacific #1 of gas consumption region

7 STRATEGY GAZPROM 2018 INVESTOR DAY 2035 RUSSIAN GAS INDUSTRY OUTLOOK Gazprom share in production 2016 2035 Gas share 1 66% >69% in energy mix Gazprom holds exclusive rights for gas pipeline 52% exports from Russian Min Max “Existing amount of PJSC Gazprom’s functions will Gas production in Russia1 Gas consumption in Russia1 be maintained” DRAFT RUSSIAN ЕNERGY +20-38% +14-15% STRATEGY UNTIL 2035 858 875 827 503 bcm 497 757 bcm 490 727 746 486 702 470 475 670 633 436 436

2015 2020 2025 2030 2035 2015 2020 2025 2030 2035 1Source: Draft Russian Energy Strategy until 2035 (as of March 2017), Energy Research Institute of Russian Academy of Sciences.

8 STRATEGY GAZPROM 2018 INVESTOR DAY ARE ANY SUBSTANTIAL CHANGES NEEDED FOR THE RUSSIAN GAS INDUSTRY? VS. PROS CONS

• Affordable domestic prices • Mass media • High level of gasification in Russia pressure • Considerable share of Russian gas in the European market • “Bright future” of the industry • Historic high levels of Russian exports to Europe in theory • Ability to maximize export revenue and government payouts avoiding external competition • Huge spare production and transportation capacities for quick domestic and external market response • Favorable conditions for domestic competition and independent gas producers’ output growth

The answer is obvious: “NO, not in the foreseeable future”

9 STRATEGY GAZPROM 2018 INVESTOR DAY GAZPROM’S PRODUCTION STRATEGY

New upstream gas projects

ANNUAL DESIGN YEAR OF YEAR OF FIELDS CAPACITY, LAUNCH ACHIEVING bcm DESIGN CAPACITY

Kharasaveiskoye (cenoman-aptian) 32 2023-2024 2026-2027 Nadym-Pur-Taz and Yamal Peninsula fields

Kharasaveiskoye (neocomian-jurassic) 18 2026-2027 2028-2029

Bovanenkovskoye (neocomian-jurassic) 25 2024-2025 2029-2030 Kharasaveyskoye Bovanenkovskoye Severo-Kamennomysskoye 14.5 2025-2027 2030-2032 Severo-Kamennomysskoye Kamennomysskoye-Sea Russia’s Far East fields Kamennomysskoye-sea 15.1 2023-2025 2025-2027 Eastern Siberia fields

Chayandinskoye 25 2019 2024

Kovyktinskoye 25 2022 2025 Chayandinskoye Yuzhno-Kirinskoye

Yuzhno-Kirinskoye 21 2023 2033-2034

Kovyktinskoye

10 STRATEGY GAZPROM 2018 INVESTOR DAY GAZPROM’S TRANSPORTATION STRATEGY Gas infrastructure development Bovanenkovo-Ukhta 2 ANNUAL PROJECTS LENGTH, km CAPACITY, YEAR OF LAUNCH bcm Ukhta-Torzhok 2 TurkStream > 900 km (offshore section) 31.5 2019

Nord Stream 2 1,200 55 2019

Gryazovets - Gryazovets - Slavyanskaya CS 870 80 2019 Slavyanskaya CS Ukhta-Torzhok2 1 970 45 2019

Bovanenkovo-Ukhta 2 1 > 1,200 57.5 2016 Nord Stream 2 Ukhta Power of Siberia 2 2,962 km, including 2,158 km of the Peregrebnoye Power of Siberia 38 2 2019 Chayandinskoye-China border Vyborg

Slavyanskaya СS Gryazovets Power of Siberia Torzhok Pochinki

Existing TurkStream New/Expansion 1 Pipelines Bovanenkovo-Ukhta and Ukhta – Torzhok were launched in 2012 2 Export capacity

11 STRATEGY GAZPROM 2018 INVESTOR DAY EUROPEAN1 GAS MARKET HOLDS STRONG LONG-TERM POTENTIAL

bcm • Conventional gas production nearly halves by 2035 600 Gas demand2 572 • “Shale fail”: little or no unconventional gas expected 541 • Demand prospects are stable with upside potential 546 500 536 • Gas is essential for success of EU’s ambitious climate policy • Gazprom will keep further strengthening its market position in Europe in line with previously set targets 400 300 – 325 BCM GAS IMPORTS 393 - 459 BCM GAZPROM’S SHARE EVOLUTION IN THE EUROPEAN GAS MARKET (2018) (2035)

300 40 236 up to 35% 200 216 35 153 31% % Indigenous production 100 113 30

IMPORTS - MAXIMUM IMPORTS - MINIMUM SOURCES: IHS MARKIT WOOD MACKENZIE 0 25 2018 2020 2025 2030 2035 2015 2025

Sources: IHS Markit, Wood Mackenzie, Gazprom 1 Including Turkey 2 Including exports (both pipeline & Snøhvit LNG), net of UGS stock changes

12 STRATEGY GAZPROM 2018 INVESTOR DAY DESPITE THE MEDIA FUSS, U.S. LNG IN EUROPE WAS ALMOST NON-EXISTENT

Top-10 U.S. LNG destination countries in 2016−2017 Comparison of Gazprom and U.S. LNG supply and total supply by region volumes to the European2 market (figurative)

MEXICO 4.6 2016 1 SOUTH KOREA 2.9 2016 2017 CHINA 2.3 2017 CHILE 1.5 11% JAPAN 1.3 U.S. LNG 14% 33% GAZPROM bcm 16% JORDAN 1.1 10% TURKEY 0.9 58% U.S. LNG was mainly supplied to European markets with constrained access to pipeline gas INDIA 0.9 19%

ARGENTINA 0.9 20161 43% 40% 16% 40% SPAIN 0.8 OTHER 15 COUNTRIES 4.3 2017 48% 28% 24%

LATIN AMERICA ASIA EUROPE2 MENA3 0% IBERIA TURKEY OTHER COUNTRIES (EU) 100%

Sources: IHS Markit, Gazprom estimates 1 Totals don’t sum due to rounding 2 Including Turkey 3 Middle East & North Africa (i.e. Egypt)

13 STRATEGY GAZPROM 2018 INVESTOR DAY CHINA’S GAS MARKET: TRANSITION FROM BYSTANDER TO MAJOR SUPPLIER bcm

700 85 – 127 BCM GAS IMPORTS 207 – 277 BCM • Indigenous gas production growth is crucially dependent (2018) (2035) 614 on shale potential, which is yet to be proven countrywide 600 • Even with shale gas success, demand growth will outstrip it 598 • In less than a decade Gazprom is set to become a major player 500 in China holding the largest gas supply contract ever Gas demand1 • Further growth expected as new pipeline projects advance 391 400 GAZPROM’S PIPELINE GAS SHARE REVOLUTION IN THE CHINESE GAS MARKET

273 15 300 337 >13% 10−12% 242 200 Indigenous production 10 157 (Including unconventional gas) % 146 100 5

IMPORTS - MAXIMUM IMPORTS - MINIMUM SOURCES: IHS MARKIT WOOD MACKENZIE 0% 0 0 2018 2020 2025 2030 2035 2017 2025 2035

Sources: IHS Markit, Wood Mackenzie 1 Net of UGS stock changes

14 STRATEGY GAZPROM 2018 INVESTOR DAY COMMISSIONING OF LARGE EXPORT-ORIENTED PROJECTS BY 2020

Nord Stream 2 TurkStream Power of Siberia

Yakutsk CHAYANDINSKOYE RUSSIA FIELD RUSSIA

RUSSIA RUSSIA RUSSIA KOVYKTINSKOYE RUSSIA FIELD Chita Irkutsk GERMANY GERMANY AMUR GPP

CHINA TURKEYTURKEY CHINA

EXISTING PIPELINE PERMITTING STAGE EXISTING PIPELINE PIPELINE UNDER CONSTRUCTION PIPELINE UNDER CONSTRUCTION

Export capacity, bcm 55 31.5 38 Length, km >1,200 >900 2,1581 Construction start-up 2018 2017 (Q2) 2014 Commissioning date 2019 2019 2019

50% Built as of 01.02.2018 1 From Chayandinskoe field to the Russia-China border 15 STRATEGY GAZPROM 2018 INVESTOR DAY GAS BUSINESS INVESTMENT OUTLOOK

bn RUB1

Average annual investments up to 2035 will be capped at RUB 1 tn

That includes maintenance projects, construction in progress (i.e. Chayanda, Kovykta, Power of Siberia, Nord Stream 2, TurkStream, Amur Growth YOY to 2016,% 2020 2025 2030 2035 GPP etc.) and projects with no FID taken yet (Baltic LNG, Sakhalin 2 GAS PRODUCTION VOLUMES +15% +27% +31% +35% expansion etc.) EXPORT VOLUMES OF PIPELINE +34% +35% +35% GAS AND LNG (EXCLUDING FSU) +9%

1 In real terms 2017, incl. VAT

16 STRATEGY GAZPROM 2018 INVESTOR DAY

VSEVOLOD CHEREPANOV Member of the Management Committee, UPSTREAM Head of Department GAZPROM 2018 INVESTOR DAY GAZPROM’S RESOURCE BASE GAZPROM IS A GLOBAL LEADER BY HYDROCARBON RESERVES AMONG PUBLIC COMPANIES

Gazprom: proved and probable reserves, 31.12.2016 Gazprom vs global majors: proved reserves, 31.12.2016

Gazprom Group 133 bboe 17% of global gas reserves Supermajors Major Emerging Combined Markets Combined 96 bboe 97 bboe Proved and probable reserves: 23.9 bcm / 155 bboe of gas 2.4 bn t / 18 bboe of oil & condensate

Natural gas accounts for TOTAL PROVED RESERVES OF HYDROCARBONS

Source: Company data for Gazprom, 89% of total hydrocarbon reserves Bloomberg for peers

18 UPSTREAM GAZPROM 2018 INVESTOR DAY PRODUCTION STRATEGY Key gas production centers Gas production by fields2, bcm

Yamal 600 82.8 bcm 487 487 471 476 YAMAL (BOVANENKOVSKOYE FIELD) Nadym-Pur-Taz Sakhalin1 444 348.0 bcm 418 419 ZAPOLYARNOYE FIELD 0.6 bcm 400 Volga-Urals MEDVEZHYE FIELD region

23.2 bcm Taz

YAMBURGSKOYE FIELD - Pur 200 URENGOYSKOYE FIELD - CENOMANIAN -

Yakutsk OTHER FIELDS OF NADYM-PUR-TAZ Nadym

Krasnoyarsk Irkutsk OTHER REGIONS 0 Existing production centers, 2012 2013 2014 2015 2016 2017 2018 Perspective production centers bcm of gas production in 2017 PLAN

• Unique parameters of major fields located in West Siberia and Russia’s Far East ensure Gazprom’s competitive edge amid a period of low prices for hydrocarbons • Comprehensive activities aimed at maintaining current production levels at the company’s major fields coupled with bringing new fields into development • Cost optimization for projects under implementation

1 Does not include Sakhalin Energy (Sakhalin-2 project) 2 Excl. share in production of companies, investments in which are classified as joint operations

19 UPSTREAM GAZPROM 2018 INVESTOR DAY YAMAL PRODUCTION CENTER DEVELOPMENT

BOVANENKOVSKOYE GROUP OF FIELDS Bovanenkovskoye group of fields TAMBEYSKOYE GROUP OF FIELDS Natural gas Gas condensate Bovanenkovskoye field production, bcm 82.8 1 KARA SEA Overall reserves 7.5 tcm 149 mt 61.9 67.4 Malyginskoye 42.8 Annual production 220 bcm 4 mt Tasiyskiy 22.8 4.9 Severo-Tambeyskiy Zapadno-Tambeyskiy 2012 2013 2014 2015 2016 2017 Kharasaveyskoye GYDAN BAY Kruzenshternskoye Tambeyskoye group of fields Change in gas reserves (C1+C2 category1) Bovanenkovskoye Natural gas Gas condensate at Tambeyskoye group of fields, bcm YAMAL PENINSULA 7,688 Overall reserves1 7.7 tcm 599 mt

OB BAY TAZ BAY 2,302 2,646 Yamburgskoye Yamburg 2008 2016 2017 RESERVES GROWTH IN 2017 RESERVES GROWTH IN 2008-2016 1Reserves as of January 1, 2018, calculation is based on the Russian reserves classification system STATE REGISTER (GKZ)

20 UPSTREAM GAZPROM 2018 INVESTOR DAY EFFICIENT PRODUCTION AT DEVELOPED FIELDS ACHIMOV DEPOSITS OF URENGOYSKOYE FIELD

Licenses for blocks I–IV of Achimov deposits

KARA SEA are owned by Gazprom: Licensed blocks • Block I is developed by Achimgaz, a service joint venture between Gazprom (50%) and Wintershall (50%) Участки 3-5 • Block II is developed by Gazprom Kharasaveyskoye GYDAN BAY • Blocks IV and V are to be developed by Achim Development, Kruzenshternskoye a service company owned by Gazprom (74.99%) Bovanenkovskoye V Arktikgaz and Wintershall (25.01%), starting 2020 IV I Forecasted production at Achimov deposits, bcm TAZ BAY 40 YAMAL PENINSULA ROSPAN VI II 30 Yamburgskoye BLOCKS IV & V Yamburg Arktikgaz 20 OB BAY III ROS 10 BLOCKS I & II Novy PAN Urengoyskoye Urengoy 0 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040

21 UPSTREAM GAZPROM 2018 INVESTOR DAY NEW GAS PRODUCTION CENTERS KEY DESTINATION — SUPPLY TO THE POWER OF SIBERIA GAS TRUNK PIPELINE

Chayandinskoye gas, condensate and oil field 23.6 25 25 25 25 25 25 19 Reserves1 13.8 Chayandinskoye Yakutsk 6.9 1.4 tcm of gas field 1.5 76.7 mn t of oil and gas condensate 7.4 bcm of helium Amur 2019 2020 2021 2022 2023 2024 2025 2030 2035 2040 2045 Kovyktinskoye GPP GAS PRODUCTION, BCM field Chita Kovyktinskoe gas and condensate field

Irkutsk 25 25 25 25 25 25

CHINA 15 Reserves1 2.7 tcm of gas MONGOLIA 4.9 90.6 mn t of gas condensate 7.7 bcm of helium 2023 2024 2025 2030 2035 2040 2045 2050 GAS PRODUCTION, BCM 1 Reserves calculation is based on the Russian reserves classification system

22 UPSTREAM GAZPROM 2018 INVESTOR DAY GAS CONDENSATE – PREMIUM PRODUCT

Key condensate production centers

Yamburg Novy Urengoy • Compared to oil, condensate is a premium product thanks

Yuzhno- 0.2 Orenburg to a low level of heavy impurities 0.1 Tomsk 0.3 Sakhalinsk Astrakhan 3.7 • Diversification of the company’s revenue sources via increased volumes Gas condensate production, mt of condensate sales 18.0 15.3 15.9 15.9 15.2 16.0 11.0 12.0 11.9 11.7 11.2 11.1 7.0 3.3 4.0 4.2 4.0 4.9 INCL. ACHIMOV 2015 2016 2017 2018 PLAN 2019F 2020F DEPOSITS

23 UPSTREAM GAZPROM 2018 INVESTOR DAY TECHNOLOGIES FOR MAINTAINING GAS PRODUCTION AT CONVENTIONAL FIELDS

Modular compressor unit Modular compressor unit allows to produce natural gas at wellhead pressures of up to 0.1 MPa

Hydraulic fracturing Hydraulic fracturing is one of the most efficient ways to stimulate hydrocarbon inflows, improving oil and gas recovery at the final stage of development

Sidetracking Sidetracking allows to extend operation of wells that were previously stimulated using various methods to improve the flow

24 UPSTREAM GAZPROM 2018 INVESTOR DAY IMPORT SUBSTITUTION AT GAZPROM PURPOSES OF IMPORT IMPORT SUBSTITUTION EFFICIENCY RESULTS ACHIEVED SUBSTITUTION 54.5% Gas transportation 100% share Cutting costs, increasing economic efficiency In 2016–2017, of domestically efforts in a number of produced areas generated Mitigating risks related to: equipment and • Technology an aggregate economic effect of materials • Foreign exchange 45.5% Gas RUB 11.8 bn • Sanctions production Gas production Gas transportation and distribution Increasing operational efficiency Examples of efficient Import substitution in 2016–2017 PROSPECTIVE PROJECTS Import substitution mechanisms: • Engaging in repairs of imported gas compressor unit • R&D by Gazprom engines • R&D by manufacturers • Technology licensing and acquisition • Engaging in production of highly corrosion-resistant • Engaging in equipment production under long- underground equipment able to withstand pressures Scheduled for term agreements with manufacturers of up to 70 mpa 2021–2025 • Engaging in production of certain types of ball valves State aid: (pn = 2.0–10.0 mpa; DN = 50–700 mm) • Subsidized R&D Natural gas Underwater • Subsidized lending • Engaging in production of silica gels to be used for Liquefaction hydrocarbon • Special investment contracts, etc. ensuring safe underwater transportation of gas production

25 UPSTREAM GAZPROM 2018 INVESTOR DAY

ALEXANDER MEDVEDEV EXPORT Deputy Chairman of Management Committee GAZPROM 2018 INVESTOR DAY GROWTH VECTOR: EUROPEAN NATURAL GAS DEMAND RECOVERY

European gas balance, bcm1 Gas demand recovered +15.4% above 2011 level due to:

551.4 560.5 600 542.1 540.4 541.7 • Broader use of gas in power generation 485.5 506.6 500 (+6.2% YOY)

400 48% 46% 48% 54% Drop in demand for coal 45% 48% 52% • 300 • Economic growth in leading European 200 gas markets 52% 54% 52% 55% 52% 48% 46% 100 Growing demand and declining indigenous production over the last four years led to 0 increased import requirements 2011 2012 2013 2014 2015 2016 2017E INDIGENOUS PRODUCTION IMPORTS CONSUMPTION Gas prices in Europe rebounded as a result

Source: IEA, Eurostat, National Statistics, IHS Markit 1 Hereinafter except as otherwise noted: European countries with Turkey (excluding CIS and Baltics) GCV = 8,850 kcal/cm, t = 20°C

27 EXPORT GAZPROM 2018 INVESTOR DAY GAZPROM INCREASES ITS SHARE IN THE LONG TERM

European gas balance Gazprom’s share in European consumption was up to 34.7% in 2017 vs. 33.1% in 2016 100% 4% 8% 8% 3% 5% 9% 7% and 27.3% in 2011 90% 11% 11% 17% 13% 10% 10% 12% 80% Pipeline gas is the main source meeting the growing demand for imported gas 70% 30% 27% 30% 31% 26% 33% 35% 60% While modestly increasing in 2017, LNG 50% supplies to Europe still remain significantly 40% below the 2011 record level 30% 52% 53% 56% 52% 53% 48% 46% Gazprom met two-thirds of the incremental 20% demand in 2017 and proved its ability to fill 10% in any additional supply/demand gap 0% 2011 2012 2013 2014 2015 2016 2017E Gazprom average export price increased by

INDIGENOUS PRODUCTION GAZPROM LNG OTHER IMPORTS 17.8% yoy, up to $197/mcm

Source: PJSC Gazprom, Eurostat, National Statistics, IEA, IHS Markit

28 EXPORT GAZPROM 2018 INVESTOR DAY MAJOR SUPPLIERS TO EUROPEAN MARKETS

Deliveries by Europe’s major exporters and producers, bcm

194.4 Exporters Internal producers 200 179.3 In 2017, Gazprom had another year 2016 2017 of record high sales on the back of sluggish deliveries by other suppliers except for Norway 150 131.6 124.1 The Netherlands inched further on the path 100 of becoming a net importer

51.2 49.6 44.9 45.1 45.5 On 19 Dec 2017, Gazprom set an absolute 50 39.1 record in terms of daily export deliveries at 24.1 24.0 26.6 16.7 640 mcm/d, demonstrating its robust ability of being a swing supplier at a time 0 of demand spikes PJSC GAZPROM ALGERIA QATAR OTHER LNG NORWAY*1 UNITED NETHERLANDS (INCL. LNG) KINGDOM

1 Including domestic consumption, pipeline and LNG deliveries from Norway to the European market, but not LNG to Asia and America Source: PJSC Gazprom, Eurostat, National Statistics, IEA

29 EXPORT GAZPROM 2018 INVESTOR DAY GAZPROM’S EXPORT ROUTES

Capacity utilization of main routes for gas supplies to Europe in 2017, bcm1

248.4 250 Gazprom transport Other suppliers routes Utilization rates of Gazprom transport routes 200 reached their maximum level in 2017, which 165.0 151.3 requires capacity extension for the pipelines 150 124.4 running to Europe 93.4 100 67.9 64.7 Utilization rate of the competing routes 55.0 44.3 51.0 50 39.7 34.9 was below capacity or even declined 15.8 16.0 18.2 (i.e. Libya, Algeria) 2.4 10.7 4.7 0 FINLAND BLUE STREAM VIA BELARUS NORD STREAM VIA UKRAINE* FROM LYBIA**2 FROM FROM LNG***3 ALGERIA**2 NORWAY**2 Utilization rate of LNG terminals in Europe Utilization rate 22% 99% 90% 93% 57% 26% 51% 82% 26% stood at 26% of their capacity in 2017

PHYSICAL FLOWS TOTAL CAPACITY

1 Physical flow volumes, including fuel gas, UGS injection, gas for Moldova transited through Ukraine, gas for Lithuania transited through Belarus 2 Pipeline exports 3 Including LNG trading between European countries and capacity of FSRUs, excluding small-scale LNG supplies Source: ENTSOG, Bloomberg, IHS Markit

30 EXPORT GAZPROM 2018 INVESTOR DAY GROWTH VECTOR: GAS DEMAND IN CHINA IS GROWING FASTER THAN IN OTHER MARKETS

Gas demand in China Gas supply in China, bcm China is the main driver of demand in 2012-2017, bcm 235 growth in Asia: 240 240 220 206 • Gas demand: +14% YOY 235 220 53 200 200 206 36 • LNG imports: +47% YOY 180 193 180 160 179 42 169 160 39 • Pipeline imports: +8% YOY 140 147 140 120 120 • Total imports: +27% YOY 100 100 80 80 147 60 60 137 40 40 In 2017 Chinese imports surged and 20 20 China became the second largest net 0 0 -3 -4 importer of natural gas in the world. 2012 2013 2014 2015 2016 2017E -20 -3 -3 2016 2017E China could take over Japan as the DEMAND INDIGENOUS PRODUCTION IMPORTED PIPELINE GAS world’s largest natural gas importer IMPORTED LNG EXPORTED PIPELINE GAS*1 STATISTICAL DIFFERENCE**2 in coming years. 1 Pipeline exports in Macao and Hong Kong 2 The statistical difference in consumption and gas supply is due to gas in transit, volumes in storage, losses and statistical discrepancies Source: IEA; General Administration of Customs, National Bureau of Statistics, National Development and Reform Commission, National Energy Administration, People’s Republic of China; CNPC Research Institute of Economics and Technology

31 EXPORT GAZPROM 2018 INVESTOR DAY US LNG IS ATTRACTED BY PREMIUM NON-EUROPEAN MARKETS

Economics of LNG supplies from USA 600 17.0

500 14.2 Although European hub prices 400 11.4 significantly increased above short-run marginal costs, they 300 8.5 are still below full-cycle costs of US LNG

200 5.7 USD/mmbtu USD/mmcm For the off-takers with deliveries 100 2.8 to Europe, it is a loss making exercise 0 0.0 European market is not a first choice for LNG from the USA US LNG BREAKEVEN PRICES (FULL CYCLE COSTS)*1 TTF, MONTH AHEAD AND FUTURES

EUROPEAN CONTRACT PRICES (IMF) JAPANESE LNG IMPORT PRICE 1Calculated on the basis of Henry Hub Futures prices, P = HH * 115% + X, where X – costs of liquefaction, S. KOREAN LNG IMPORT PRICE ASIAN SPOT PRICES (ACTUAL AND FORECAST) shipping to Europe, regasification Source: IMF, Korea Customs Service, Bloomberg, IHS Markit

32 EXPORT GAZPROM 2018 INVESTOR DAY LNG DEMAND GROWTH IN 2017 WAS SLIGHTLY HIGHER THAN LIQUEFACTION CAPACITY INCREASE

Incremental liquefaction capacities and demand in 2017, YOY, bcm

50 LNG Demand Increase Liquefaction Capacity Increase In 2017, demand for LNG 45 0.4 0.3 1.7 1.1 caught up with liquefaction 40 6.2 capacities expansion 11.5 35

30 Over 70% of total LNG demand 13.3 growth in the world came from 25 bcm Asia, mainly from China and 20 41.1 South Korea. 35.0 15 31.0 12.4 Higher spot prices on the 10 European gas market attracted 5 7.6 1.7 more LNG in 2017 compared 0 with 2016. ASIA EUROPE NORTH MIDDLE LATIN AFRICA TOTAL LNG DEMAND TOTAL AUSTRALIA UNITED RUSSIA MALAYSIA AMERICA EAST AMERICA*1 DEMAND SURPLUS LIQUEFACTION STATES INCREASE CAPACITIES 1Excluding Mexico INCREASE Source: IHS Markit

33 EXPORT GAZPROM 2018 INVESTOR DAY GAZPROM’S LNG BUSINESS

Gazprom’s LNG trading in 2005-2017 Gazprom’s LNG projects in operation: Gazprom is committed to building Sakhalin 2 (T1,2) – 9.6 mmt/year1 a diversified LNG trading portfolio mmt to continue reliable and timely deliveries • 11.3 mmt2 of LNG supplied in 2017 4 of LNG to its customers. 3.7 • In 2017 Gazprom took delivery of

3.6 1.5 mmt3 of LNG from Sakhalin which was 3.4 3.3 JAPAN - 36% sold to customers in Asia Pacific In 2017: 3 Gazprom’s LNG projects under development: • Gazprom delivered 48 cargoes to customers

2.3 in 9 countries; CHINA - 18% Sakhalin 2 T3 – up to 5,4 mmt/year • Japan was the biggest importer of LNG from 2 1.9 Gazprom’s portfolio.

1.5 ▪ In 2015, Gazprom signed MOU with Shell

1.4 1.4 TAIWAN - 12% on project implementation Gazprom LNG portfolio overview: ▪ The project’s FEED is currently under 1 development LT LNG Purchase Agreements Other MT/ST/

0.5 KUWAIT - 11% 0.3 0.3 SEIC Spot 0.1 KOREA- 8% Baltic LNG - 10 mmt/year 1,0 mtpa/20y 1,2 mtpa/8y 2,9 mtpa/20y Purchases INDIA - 6% ▪ Signed HOA to set up a Joint Venture

SPAIN - 4%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2005 with Shell LT LNG Sale Agreements OTHER DES - 4% Other MT/ST/ ▪ Joint Feasibility Study with Shell is Sales currently under development 2,5 mtpa/20y

1 – Nominal capacity. Gazprom holds 50% + 1 share in SEIC (project operator company). 2 - Calculated as per SEIC reporting methodology. 3 - Under SPA and spot tenders. Calculated as per PJSC Gazprom reporting methodology

34 EXPORT GAZPROM 2018 INVESTOR DAY GAZPROM’S NATURAL GAS BUSINESS IN ASIA PACIFIC

Western Route Eastern Route Gazprom continues to expand its natural gas LNG IMPORTERS Far Eastern Route business in Asia Pacific by developing new projects - EXISTING - POTENTIAL Sakhalin 2 for both LNG and pipeline gas deliveries. Sakhalin 2 Train 3 In 2017 Gazprom and CNPC signed GAZPROM’S LNG ASSETS South a number of key milestone agreements: Korea - EXISTING China Jul’17 Additional Agreement to the Eastern - POTENTIAL Japan Route SPA narrowing the delivery start period to Eastern December 2019. Route Dec’17 The final pack of specialized technical India Taiwan GAZPROM’S LNG agreements governing the implementation of SUPPLY ROUTES natural gas supplies via the Eastern Route. Bangladesh Philippines - EXISTING Far Eastern Dec’17 Heads of Agreement for natural gas Vietnam supplies from Russia to China via the Far - POTENTIAL Route Eastern Route. Thailand Malaysia Underground May’17 Three contracts for pre-development GAZPROM’S PIPELINE Singapore Natural Gas surveys of prospective underground gas storage NATURAL GAS SUPPLY ROUTES Storage sites in China (Gazprom being the contractor).1 - UNDER CONSTRUCTION other supplies sourced May’17 Memorandum of Understanding - POTENTIAL from Gazprom Group’s Indonesia Natural Gas LNG Portfolio between Gazprom, CNPC, and China Huaneng Power Plants Group on cooperation in the power sector within China.2

1 - more specifically, Gazprom VNIIGAZ and Gazprom Geotechnology will perform the services under the contracts; 2 - the document reflects the intention of the parties to explore the possibility of 35 EXPORT implementing joint projects for the construction of thermal power plants.

<#> НАЗВАНИЕ ПРЕЗЕНТАЦИИ GAZPROM 2018 INVESTOR DAY COMPETITIVE ADVANTAGES

COMPETITIVE PRICES RELIABLE SUPPLIER

NEW APPLICATIONS GEOGRAPHICAL FOR NATURAL GAS DIVERSIFICATION

36 EXPORT GAZPROM 2018 INVESTOR DAY

ANDREY KRUGLOV FINANCE Deputy Chairman of Management Committee GAZPROM 2018 INVESTOR DAY FINANCIAL AGENDA Management focus for 2018 – 2020

• Conservative budgeting Conservative financial policy • Budgeted oil prices are lower than current prices • Cost control • Risk control

Peak of CAPEX cycle in 2018 – 2019 • Launch of key strategic projects in 2019 • Additional profit growth after 2019

Optimization of debt • Wide access to debt capital markets repayment schedule • Significant liquidity cushion

38 FINANCE GAZPROM 2018 INVESTOR DAY CONSERVATIVE BUDGETING: KEY 2018 ASSUMPTIONS Oil price, USD/BBL Gas export price, USD/MCM RUB/USD

70 60 53.0 250 64.2 58.3 50 196.7 197.1 60 43.8 200 50 40 150 40 30 30 100 20 20 50 10 10

0 0 0

2017 ACTUAL BUDGET 2018 2017 ACTUAL BUDGET 2018 2017 ACTUAL BUDGET 2018

Key priorities of financial policy

• Conservative budget assumptions • Risk control • Prioritization of investment projects • Effective debt management • Optimization of OPEX • Balanced dividend policy

39 FINANCE GAZPROM 2018 INVESTOR DAY COMFORTABLE LEVERAGE 1 USD bn Net Debt adjusted on bank deposits USD bn Debt maturity profile in 2018 – 2020 x 15 13.4 60 1.5 1.5 1.5 17.4 10 40 20.4 17.9 7.9 20.9 0.9 1.0 5.5 5 20 36.7 0.5 0.5 26.9 26.8 28.8 0 0.0 0 2014 2015 2016 9M17 2018 2019 2020 2 NET DEBT ADJ. CASH & EQUIVALENTS ADJ. NET DEBT ADJ./LTM EBITDA ADJ.

3Q2017 adjusted Net Debt structure3 USD bn GAZPROM’S RATING RUSSIAN SOVEREIGN RATING 1.8 x 60 54.1 8.6 Baa3 /positive 1.5 MOODY'S Ba1 /positive 45.5 8.7 1.5 (investment grade) 0.05 40 36.7 BBB- /positive BBB- /positive FITCH 1.0 (investment grade) (investment grade) 20 0.5 S&P BB+ / positive BB+ /positive

0 0.0 DAGONG AAA / stable A / stable TOTAL DEBT CASH & NET DEBT ST DEPOSITS LT DEPOSITS NET DEBT EQUIVALENTS REPORTED ADJUSTED 2 ADJ.NET DEBT/ADJ.EBITDA LTM 1 Existing loans, data based on 9M17 IFRS report 2 Calculated using dollar values of Net debt and EBITDA 3 According to 9M17 IFRS report

40 FINANCE GAZPROM 2018 INVESTOR DAY GAZPROM’S BANK DEPOSITS: A $9 BN ISSUE According to Gazprom 9M2017 IFRS report1:

Key features of bank deposits2: In 9M2017 Gazprom substantially increased bank deposits volumes • Early withdrawal clause 600 510 Deposit term of over 3 months RUB bn • 3 • Are NOT included in Сash and cash equivalents 400 Impact of substantial increase in bank deposits: 186 • Decrease in Cash and cash equivalents 132 507 200 • Increase in Net Debt and Net Debt/EBITDA 42 5 LT DEPOSITS • Reduction in Cash flows from operating activities (changes in 127 144 working capital)3 0 ST DEPOSITS • Decrease in Free cash flow3 2015 2016 9M2017

INCREASE IN LT AND ST BANK DEPOSITS IS AIMED AT IMPROVING THE EFFICIENCY OF LIQUIDITY MANAGEMENT

1 Source: Gazprom 9M2017 IFRS report, page 19 2 Reported as a part of Other current assets and Other non-current assets 3 Affected by ST deposits

41 FINANCE GAZPROM 2018 INVESTOR DAY KEY GAS BUSINESS INVESTMENT PROJECTS

PJSC Gazprom (parent company) BOVANENKOVO FIELD GRYAZOVETS- 2018 Investment Program SLAVYANSKAYA SMALL-SCALE LNG 67 AT PORTOVAYA CS 99 RUB BN 1,279 RUB BN NORD STREAM 2 RUB BN (INCL. VAT) 46 POWER OF SIBERIA RUB BN 115 Ukhta RUSSIA CHAYANDA FIELD 218 RUB BN St. Petersburg UKHTA-TORZHOK 2 116 RUB BN Torzhok Gryazovets 48 RUB BN RUB BN Moscow Greifswald GERMANY AMUR GPP Blagoveshchensk TURKSTREAM 89 Anapa RUB BN 182 KEY INVESTMENT PROJECTS RUB BN RUB BN — CAPEX 2018 Kiyikoy TURKEY CHINA (INCL. VAT)

42 FINANCE GAZPROM 2018 INVESTOR DAY GROUP INVESTMENT PROGRAM IN 2018 – 2020 Gas business1 Oil business1 Power generation business1 (PJSC Gazprom – parent company) (Gazprom Neft) (Gazprom Energoholding)

RUB bn RUB bn RUB bn 1600 800 400

1400 600 300

1200 400 200

1000 200 100

800 0 0 2017 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 Key projects: Key projects: Key projects: • Power of Siberia (incl. upstream) • Key greenfields developments • Grozny TPP • Nord Stream 2 • Brownfields maintenance • Amur TPP • TurkStream • Downstream projects: Moscow • Panchevo TPP • Amur GPP and Omsk Refineries • Maintanence

1 Incl. VAT

43 FINANCE GAZPROM 2018 INVESTOR DAY STRATEGIC PROJECTS TO DELIVER PROFIT GROWTH GAZPROM’S KEY STRATEGIC PROJECTS TO START CONTRIBUTING TO EBITDA AND FCF SINCE 2020

Gas export growths Cash cost reduction Supplies to China via Power of Siberia pipeline Positive effect of consolidation Project design volumes of gas deliveries to China 40 30 20 38 10 0 2019 2020 2021 2022 2023 2024 2025 TRANSIT, UKRAINE NORD STREAM 2 TARIFF NORD STREAM 2 OPEX

20% of additional gas export volumes1 TRANSPORTATION COSTS REDUCTION • Positive effects of full consolidation of Nord Stream 2 and TurkStream 8% of additional gas production volumes Nord Stream 2 • 2,000 km shorter export route from field to Germany Start of deliveries in 2019 • Modern high pressure fuel-efficient pipeline corridor: lower transportation costs for Russian part of the route and especially for Nord Stream 2 from consolidation and lower Rouble cost base transportation costs Export revenues linked to USD denominated oil product prices • > $1.0 bn per year positive effect on EBITDA and FCF level Mineral extraction tax breaks • Positive effect on net income TurkStream Sales of liquids from Chayandа field Sales of helium, LPG, ethane from Amur GPP • Currently deliveries to Turkey go via Ukraine, Romania and Bulgaria • Highly efficient 280 atm trunk pipelines 1 At target level of gas exports of 38 bcm, compared to 2017 non-CIS gas exports

44 FINANCE GAZPROM 2018 INVESTOR DAY FREE CASH FLOW GENERATION Gazprom FCF generation Key factors of FCF dynamics in 2018 - 2021: USD bn

15 Strong market positions

10 • Strong foothold on the European market 16.9 • Strong oil and gas prices, improved outlook 12.2 13.7 5 10.8 6.4 Revenue growth 2.2 3.2 2.9 4.0 3.0 0 • Start of gas exports to China from 2019 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 • Oil and condensate production growth

CAPEX optimization Gazprom’s FCF: Bloomberg consensus USD bn • Lower CAPEX after 2019 • CAPEX optimization and prioritization 10 7.2 • Favorable currency structure of OCF and CAPEX 8 6.8 • Transition of oil and power generating businesses to positive FCF 6 territory 4 Costs optimization 2 • Additional transportation costs reduction in 2020 0 (TurkStream, Nord Stream – 2) -2 -0.3 -0.7 • Mineral extraction tax reduction of c.RUB100 bn per year in -1.6 2018 and further reduction after 2020 -4 • Cost control and optimization 2017 2018 2019 2020 2021

45 FINANCE GAZPROM 2018 INVESTOR DAY POTENTIAL IMPACT OF U.S. AND EU UKRAINE-RELATED SANCTIONS ON GAZPROM’S BUSINESS SANCTIONS PACKAGES KEY CONSTRAINTS SANCTIONS EFFECT

• Arctic offshore projects1 • Technological Restrictive measures: Gazprom Group’s oil • Shale projects1 • Covers below 1% of Gazprom exploration and production • Deepwater projects1 Group’s production activities • Yuzhno-Kirinskoye field development2

• Raising international long term debt finance by • No restrictions for Gazprom's • Financial Restrictive measures: Gazprom Neft raising finance in capital markets, Gazprom Group’s financing with the Company being an active activities • Raising international long debt finance by player in debt markets (except for Gazprombank3 Canada’s market)

• No explicit prohibitions on Gazprom, but the new • The guidance published by the US Department of State on October New restrictive measures under US law touches upon possible secondary sanctions • to be imposed on a making significant investments 31, 2017 “grandfathers” Russian the US law of August 2017 in Russian energy export pipelines or in a special energy export pipeline projects Russian crude oil project. “initiated” prior to August 2, 2017

THE US AND EU SANCTIONS DO NOT LIMIT GAZPROM’S ACCESS TO THE GLOBAL CAPITAL MARKETS

1 Projects that have the potential to produce oil in the Russian Federation or that are initiated on or after January 29, 2018, outside Russia where the Gazprom has control or has an interest not less than 33 % (US Directive 4 as amended on October 31, 2017) 2 According to the US BIS designation as of August 2015 3 Gazprom Group’s associated company

46 FINANCE GAZPROM 2018 INVESTOR DAY IMPROVING CORPORATE GOVERNANCE BRINGING CORPORATE GOVERNANCE STANDARDS IN LINE WITH THE BEST PRACTICES

2017 results 2018 plans

• First time assessment of the Board of Directors and its • To develop and gradually implement a corporate governance committees performance improvement plan based on independent audit recommendations:

• Independent audit of corporate governance on a regular basis ✓ To make a larger number of documents available prior to shareholder meetings and launch electronic voting ✓ To launch an induction programme for newly-elected directors • Third-party assessment of anti-corruption initiatives ✓ To use a personal attendance criteria for directors remuneration ✓ To make further steps to prevent conflict of interest of the Board members • Corporate governance road shows in Europe, UK and US, ✓ To amend respective internal regulations in order to allow the Board as well as ESG road show committees to engage advisors

• To introduce communication between shareholders, investors • Annual sustainability reporting (biennial prior to 2017) and independent directors

47 FINANCE GAZPROM 2018 INVESTOR DAY DIVIDEND PAYOUT GAZPROM PURSUES BALANCED DIVIDEND POLICY Outlook for 2018 – 2019: Dividend per share • Keeping the DPS equal to the level of the previous payment Over the past few years, Gazprom • Maintenance of conservative financial strategy consistently increased its dividend payments: • Balanced approach to the dividend policy 14 RUB/ Share • Increasing the Company’s investment attractiveness 12 12M dividend yields of major oil & gas companies1 10 8.97 8% 7.89 8.0397 6.2% 8 7.2 7.2 5.9% 5.6% 6% 5.5% 5.5% 5.3% 5.99 4.7% 6 4.1% 4.0% 4% 3.5% 3.5% 3.4% 3.85 4 2.2% 2.39 2.1% 1.8% 2% 2 0.36 0% 0 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: companies data. Bloomberg 1 Dividend yield is defined as approved dividends for the period divided by the share price as of January 31, 2018

48 FINANCE GAZPROM 2018 INVESTOR DAY INVESTMENT CASE BUSINESS GROWTH, ENHANCING SUPPLY SECURITY

Conservative Improving Balanced STRONGER FINANCIAL financial policy, FCF profile dividend policy costs control OUTLOOK

Business growth Improving gas markets Strategic transformative projects in gas and oil outlook. BUSINESS (capex peaking segments; further Spare production and export in 2018 - 2019) GROWTH growth potential capacity

High competiveness Outstanding resource base and UNIQUE Low cost base of Gazprom’s gas. infrastructure Record exports FUNDAMENTALS

49 FINANCE